DBRS Confirms Concentra at R-1 (low), Stable Trend

DBRS has today confirmed the Short-Term Instrument rating of Concentra Financial Services Association (Concentra) at R-1 (low) with a Stable trend.

The rating continues to be based on a high level of implied support from Credit Union Central of Saskatchewan (SaskCentral). Using DBRS’s bank rating methodology, a Support Assessment of SA1 has been assigned to Concentra, reflecting a strong expectation of timely support from SaskCentral. Although though there are no explicit guarantees in place, the rating is a function of the strategic importance of Concentra to SaskCentral and the Saskatchewan credit union system.

On a stand-alone basis, Concentra’s strengths include asset quality and liquidity. Its major challenges include further reducing interest rate exposure (which results in volatility in profitability and internal capital generation), improving its funding base (quality, cost and diversification) and improving geographic diversification.

Notes:
The applicable methodologies are Rating Canadian Provincial Credit Union Centrals, Credit Unions and Desjardins Group (April 2011), Global Methodology for Rating Banks and Banking Organizations (January 2010) and DBRS Criteria: Intrinsic and Support Assessments (February 2009), which can be found on the DBRS website under Methodologies.

The sources of information used for this rating include company documents. DBRS considers the information available to it for the purposes of providing this rating was of satisfactory quality.

This rating is endorsed by DBRS Ratings Limited for use in the European Union.

Lead Analyst: John van Boxmeer
Rating Committee Chair: Brenda Lum
Initial Rating Date: August 2, 2005
Most Recent Rating Update: May 11, 2011